National Institute of Public Finance and Policy

The National Institute of Public Finance and Policy (NIPFP) is a centre for applied research in public finance and public policy.

Address: 18/2, Satsang Vihar Marg, Special Institutional Area, New Delhi - 110067 (INDIA).

Tel: 26563688, 26569780, 26569784

Fax: 91-11-26852548

Email Id:


Paper Type:

COVID-19: Global Diagnosis and Future Policy Perspective

The macroeconomic policy responses to COVID-19 pandemic and the impact of the pandemic on economic growth, and the level of consumption are analysed. The COVID-19 crisis is a dual crisis - public hea...

Section: Working Papers

by Divy Rangan | On 05 May 2020

COVID-19 and Macroeconomic Uncertainty: Fiscal and Monetary Policy Response

The macroeconomic uncertainty created by COVID-19 is hard to measure. The situation demands simultaneous policy intervention in terms of public health infrastructure and livelihood. Along with the g...

Section: Working Papers

by Lekha S. Chakraborty | On 13 Apr 2020

How to Modernise the Working of Courts and Tribunals in India

Indian courts are clogged with large backlogs. Part of the reason for the problem is that cases take a very long time to move through the courts. It slows progress of court cases is harmful for the In...

Section: Working Papers

by Pratik Dutta | On 25 Mar 2019

Impact of Changes in Fiscal Federalism and Fourteenth Finance Commission Recommendations Scenarios on States Autonomy and Social Sector Priorities

This paper compares the additional gains from higher tax devolution in the post 14th FC period, with the additional burden due to the withdrawal of certain central schemes and the changes in the shar...

Section: Working Papers

by Amarnath H. K. | On 15 Mar 2019

The Political Economy of Gender Budgeting: Empirical Evidence from India

Gender budgeting is a public policy innovation to transform the gender commitments into budgetary commitments. The political economy process of gender budgeting in India has encompassed four distinct...

Section: Working Papers

by Lekha Chakraborty | On 15 Mar 2019

Inter-Governmental Fiscal Transfers in the Presence of Revenue Uncertainty: The Case of Goods and Services Tax (GST) in India

A comprehensive multistage Value Added Tax (VAT) system, viz., Goods and Services Tax (GST), is introduced in India since 1 July 2017. GST encompasses various taxes from Union and State indirect tax b...

Section: Working Papers

by Sacchidananda Mukherjee | On 27 Feb 2019

Private Hospitals in Health Insurance Network in India: A Reflection for Implementation of Ayushman Bharat

This paper examines the availability and spread of private hospitals in the country to provide insights on the potential access to insured health services in GSHIS schemes. It uses three sets of infor...

Section: Working Papers

by Mita Choudhury | On 19 Feb 2019

Public Expenditure on Old-Age Income Support in India: Largesse for a Few, Illusory for Most

Extant studies deciphering public expenditure on old-age income support in India carry limitations on (a) system expanse, (b) corresponding data collation, and therefore (c) depth of resource conscrip...

Section: One pager

by Mukesh Kumar Anand | On 01 Feb 2019

Towards India’s New Fiscal Federalism

The paper explored deep analytical issues such as the nature of the objective function to be optimized, planning horizon, choice of the discount rates, etc. No wonder, his book “Capital and Developmen...

Section: Working Papers

by Vijay Kelkar | On 25 Jan 2019

The Way Forward for Personal Insolvency in the Indian Insolvency and Bankruptcy Code

This paper describes the Indian credit market and presents an argument for the need for personal insolvency law. It provides a brief overview of the provisions on personal insolvency in the IBC. It ma...

Section: Working Papers

by Renuka Sane | On 24 Jan 2019

What do we Know about Changing Economic Activity of Firms?

Identification of primary economic activity of ¬firms is a prerequisite for compiling several macro aggregates. This paper takes a statistical approach to understand the extent of changes in primary e...

Section: Working Papers

by Radhika Pandey | On 22 Jan 2019

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

This study investigates the macroeconomic effects of public debt in India using a Structural Vector Auto regression (SVAR) framework for the period from 1980 to 2017. The objective of this study is to...

Section: Working Papers

by Ranjan Kumar Mohanty | On 22 Jan 2019

Examining the Trade-Off Between Price and Financial Stability in India

In recent years, many emerging economies including India have adopted inflation targeting framework. Post the global financial crisis, there is a growing debate on whether monetary policy should targe...

Section: Working Papers

by Ila Patnaik | On 21 Jan 2019

Value Destruction and Wealth Transfer Under the Insolvency and Bankruptcy Code, 2016

This article applies theoretical concepts from the law and economics literature on insolvency to identify the sources of these two problems in insolvency law. It then applies these theoretical concept...

Section: Working Papers

by Pratik Datta | On 15 Dec 2018

Disclosures in Privacy Policies: Does “Notice and Consent” Work?

This paper evaluates the quality of privacy policies of five popular online services in India from the perspective of access and readability. The paper ask – do the policies have specific, unambiguous...

Section: Working Papers

by Rishab Bailey | On 11 Dec 2018

Analyzing the Dynamic Relationship between Physical Infrastructure, Financial Development and Economic Growth in India

The paper investigates dynamic relationship between physical infrastructure, financial development and economic growth in the case of India, using an Autoregressive Distributed Lag (ARDL) and Toda-Yam...

Section: Working Papers

by Ranjan Kumar Mohanty | On 05 Dec 2018

Impact of Intergovernmental Fiscal Transfers on Gender Equality in India: An Empirical Analysis

Intergovernmental fiscal transfers (IGFT) are, in theory, neither good nor bad for tackling gender inequalities. Fiscal federalism with asymmetry in revenue and expenditure assignments inevitably lead...

Section: Working Papers

by Janet G. Stotsky | On 30 Nov 2018

UDAY Power Debt in Retrospect and Prospects: Analyzing the Efficiency Parameters

The Government of India launched the Ujwal DISCOM Assurance Yojana (UDAY), in November 2015, with an objective of “Power for All”. Under the UDAY scheme, selected States agreed to convert 75 per cent...

Section: Working Papers

by Amandeep Kaur | On 22 Nov 2018

Exporting and Firm Performance: Evidence from India

In this paper the positive correlation between firm productivity and export status is well established. This correlation can arise from multiple alternative casual models. It has investigated these re...

Section: Working Papers

by Apoorva Gupta | On 05 Nov 2018

Data Localisation in India: Questioning the Means and Ends

This paper classifies the arguments around data localisation into three broad categories - the civil liberties perspective; the government functions perspective and the economic perspective. It examin...

Section: Working Papers

by Rishab Bailey | On 31 Oct 2018

Health and Disaster Risk Management in India

This paper presents an overview of India’s health capacity in managing disaster risks. It looks at demographic, epidemiological and developmental transitions in India and how that impacts decision mak...

Section: Working Papers

by Supriya Krishnan | On 30 Oct 2018

The Development of Education and Health Services in Asia and the Role of the State

This paper analyses the dramatic spread of education and healthcare in Asia and also the large variations in that spread across and within countries over fifty years. Apart from differences in initial...

Section: Working Papers

by Sudipto Mundle | On 06 Oct 2018

Stock Market Trading in the Aftermath of an Accounting Scandal

This paper studies the impact of fraud revelation on trading behaviour of investors. It ask, if investors with direct exposure to stock market fraud (treated investors) are more likely to cash out of...

Section: Working Papers

by Renuka Sane | On 06 Apr 2018

The Economics of Releasing the V-band and E-band Spectrum in India

The paper begins with a brief overview of the characteristics of the bands. After that, it presents a review of the approaches different countries have taken while releasing this spectrum, and a secti...

Section: Working Papers

by Suyash Rai | On 02 Apr 2018

Assessing Public Expenditure Efficiency at Indian States

This paper attempts to understand what drives the public expenditure efficiency among the States. For this, it looks at the role of economic growth as well as quality of governance. The results of inp...

Section: Working Papers

by Ranjan Kumar Mohanty | On 19 Mar 2018

Fiscal Policy Effectiveness and Inequality: Efficacy of Gender Budgeting in Asia Pacific

Gender budgeting is a fiscal approach that seeks to use a country’s national and/or local budget(s) to reduce inequality and promote economic growth and equitable development. While literature has exp...

Section: Working Papers

by Lekha Chakraborty | On 08 Mar 2018

Would UDAY Brighten Up Rajasthan Finances?

Ujwal DISCOM Assurance Yojana (UDAY) required number of State governments to take over debt of power distribution companies in their books of accounts. Though this one time intervention made both debt...

Section: Working Papers

by Pinaki Chakraborty | On 06 Mar 2018

Fiscal Policy, as the “Employer of Last Resort”: Impact of MGNREGS on Labour Force Participation Rates in India

The paper examines the impact of conditional fiscal transfers on public employment across gender in India taking the case of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Th...

Section: Working Papers

by Lekha Chakraborty | On 28 Feb 2018

The Multilateral Legal Instrument: A Developing Country Perspective

This paper makes an attempt to assess whether this instrument has succeeded in bringing about the desired changes. A unique database is constructed on the basis of these country positions. Using this...

Section: Working Papers

by Suranjali Tandon | On 15 Feb 2018

Internationalisation of the Rupee

This paper evaluates the current status of the Indian Rupee as an international currency using the Chinn and Frankel (2008) framework, and explores the possibility of future Indian Rupee international...

Section: Working Papers

by Shekhar Hari Kumar | On 07 Feb 2018

Estimates of Air Pollution in Delhi from the Burning of Fire Crackers during the Festival of Diwali

Delhi is one of the most polluted cities in the world, especially in the winter months from October - January. These months coincide with the religious festival of Diwali. It is argued that air qualit...

Section: Working Papers

by Dhananjay Ghei | On 06 Feb 2018

Business Cycle Measurement in India

This paper presents the business cycle chronology for the Indian economy. Two distinct phases are analysed. The pre-1991 period when the cycles were mainly driven by monsoon shocks. The post 1991 phas...

Section: Working Papers

by Radhika Pandey | On 29 Jan 2018

What does the new 2011-12 IIP series tell us about the Indian manufacturing sector?

The paper discusses the changes in the new 2011-12 base year series of the Index of Industrial Production (IIP) to ask, whether the new series has improved our under-standing of the growth in the manu...

Section: Working Papers

by Radhika Pandey | On 29 Nov 2017

Bolder Disinvestment or Better Performance Contracts? Which Way Forward for India’s State-Owned Enterprises

This paper analyses the performance of India’s Public Sector Undertakings (PSUs) using measures of labour and overall efficiency and productivity indicators as opposed to financial returns. Using meth...

Section: Working Papers

by Ajay Chhibber | On 04 Sep 2017

Public Procurement in India: Assessment of Institutional Mechanism, Challenges, and Reforms

The present study assesses the public procurement system and recent reform initiatives in India and outlines the need for changes in the institutional frameworks.

Section: Working Papers

by Bhabesh Hazarika | On 31 Jul 2017

Social Security Agreements (SSAs) in practice: Evidence from India’s SSA with countries in Europe

The key policy issues in this field pertain to detachment benefits, totalization procedure and ensuring greater coverage under these agreements.

Section: Working Papers

by Atul Tiwari | On 27 Jul 2017

Trade Misinvoicing: What can we measure?

The existing studies on trade misinvoicing have focussed on the discrepancy in reported trade statistics between developing and developed countries. The estimates based on such methods rely on the ass...

Section: Working Papers

by Suranjali Tandon | On 04 Jul 2017

Resource requirements for Right to Education (RTE): Normative and the Real

The paper examines the issue of resource adequacy for Right to Education (RTE) by estimating the resource requirement for universalization of elementary education across twelve Indian States. Using RT...

Section: Working Papers

by Sukanya Bose | On 01 Jul 2017

Estimating Public Spending on Health by Levels of Care for National Health Accounts: An Illustration of Use of Data on Withdrawals by Drawing and Disbursing Officers (DDOs) in India

This paper illustrates the use of information on withdrawals by Drawing and Disbursing Officers (DDOs) for improving estimates of public spending for National Health Accounts (NHAs) in India. Using in...

Section: Working Papers

by Mita Choudhury | On 01 Jul 2017

Changing Tax Capacity and Tax Effort of Indian States in the Era of High Economic Growth, 2001-2014

Growing demand for public expenditures, limitations in expanding fiscal space and limited scope to deviate from common harmonized tax system under the proposed Goods and Services Tax (GST) regime may...

Section: Working Papers

by Sacchidananda Mukherjee | On 19 May 2017

Understanding Judicial Delays in Debt Tribunals

The paper argue that the judicial statistics that are currently collected are inadequate for understanding and solving the problem of judicial delay. It propose a new approach to collecting data, whic...

Section: Working Papers

by Prasanth Regy | On 02 May 2017

Budget 2017-18: Business as Usual

Budget 2017-18 was presented at the time when the global situation is inhospitable, marked with protectionism and domestic environment is constrained by the twin balance sheet crisis. The investment ...

Section: Working Papers

by M Govinda Rao | On 01 May 2017

Competition Issues in India's Online Economy

The world of high technology companies is seen as a dynamic area with a rapid pace of creative destruction. There is, however, a class of industries where there are strong network effects, where the m...

Section: Working Papers

by Smriti Parsheera | On 03 Apr 2017

Judicial Review and Money Bills

Under the Constitution of India, for a bill to be enacted into a law, it has to be approved by both Houses of the Parliament - the Lower House (Lok Sabha) and the Upper House (Rajya Sabha). There is o...

Section: Working Papers

by Pratik Datta | On 07 Mar 2017

An Automatic Leading Indicator Based Growth Forecast For 2016-17 and The Outlook Beyond

Building on the early work of Mitchell and Burns (1938,1946), the automatic leading indicator (ALI) approach has been developed over the last few decades by Geweke (1977), Sargent and Sims (1977), Sto...

Section: Working Papers

by Parma Chakravartti | On 01 Mar 2017

Envisioning Tax Policy for Accelerated Development in India

The objective of the paper is to highlight the reforms needed in the tax system to improve the revenue productivity of the tax system to conform to the vision of accelerating economic growth and dev...

Section: Working Papers

by M. Govinda Rao | On 28 Feb 2017

Indian Variant of MTEF: The Scope and Opportunities to Develop an Effective Budget Planning Process

The paper examines the medium-term fiscal policy (MTFP) and a more conventional medium-term expenditure framework (MTEF) adopted in India under the provisions of the fiscal rules. The MTFP and the MTE...

Section: Working Papers

by Pratap Ranjan Jena | On 06 Jan 2017

Demonetization, the Cash Shortage and the Black Money

Demonetisation of INR 500 and INR 1,000 notes in India on November 8, 2016 is different from many other countries’ scrapping of high value notes in two respects – the withdrawal of their legal tende...

Section: Working Papers

by Ashok K. Lahiri | On 31 Dec 2016

Endogenous Leadership in a Federal Transfer Game

Conventional wisdom suggests that, to negate fiscal externalities imposed by provinces which spend too much and raise lower local resources, central authority should always be a first mover in the t...

Section: Working Papers

by Bodhisattva Sengupta | On 07 Nov 2016

Regime Shifts in India’s Monetary Policy Response Function

The objectives of monetary policy have always been a topic of intensive debate. This debate has resurfaced during the past few years. In India too monetary policy-making appears to have undergone si...

Section: Working Papers

by Lokendra Kumawat | On 07 Sep 2016

How does Supply Chain Distortion affect Food Inflation in India?

During the recent episode of persistently high food inflation in India, the role of rent seeking activities of food suppliers emerged as the centre of debate in the country. The rent seeking activitie...

Section: Working Papers

by Rudrani Bhattacharya | On 23 Aug 2016

GST in India: Chasing a Mirage or Reality?

India is moving towards introducing a Goods and Services Tax (GST). The GST would be a multistage comprehensive value added tax (VAT) encompassing both goods and services. Given the federal structur...

Section: One pager

by Sacchidananda Mukherjee | On 03 Aug 2016

Public Expenditure, Governance and Human Development: A Case of Madhya Pradesh

This paper examines the link between quality of governance, public expenditure and human development outcomes in the state of Madhya Pradesh. The role of governance is measured in five dimensions: Pol...

Section: Working Papers

by N R Bhanumurthy | On 20 Jul 2016

Search for Resources in a High Income State: A Study of State Finances of Sikkim

The paper examines the public financial management (PFM) of Sikkim focusing mainly on resources generation effort and budget management practices. We note that any deviation from the Central transfers...

Section: Working Papers

by Pratap R Jena | On 17 May 2016

Revisiting the Tax Compliance Problem using Prospect Theory

The paper presents a model for tax compliance based on prospect theory wherein an individual makes the decision whether to file, and declare a certain amount of income, or to not file based on a set...

Section: Working Papers

by R.Kavita Rao | On 18 Apr 2016

Dynamics of Political Budget Cycle

Using the method of optimal control, when an incumbent politician derives utility from voting support and dis-utility from budgetary deficit, the equilibrium time paths of both voting support and budg...

Section: Working Papers

by Ganesh Manjhi | On 26 Feb 2016

Where is India’s Growth Headed?

In this paper, we analyze the sources of output growth in the past three decades and discuss the outlook going forward. Projections are made for the growth of factors of production and the growth of...

Section: Working Papers

by Ila Patnaik | On 15 Jan 2016

Inequality Effects of Fiscal Policy: Analysing the Benefit Incidence on Health Sector in India

This paper analyses the benefit incidence of public health spending on inpatient service delivery, categorised by region, gender and economic class. Inpatient morbidity data among quintile-wise MPCE...

Section: Working Papers

by Kausik K. Bhadra | On 02 Dec 2015

Present State of Goods and Services Tax (GST) Reform in India

There are several challenges before introduction of GST and these can be classified into two broad heads – a) GST Design and Structure related, and b) GST Administration and Institutional. On design r...

Section: Working Papers

by Sacchidananda Mukherjee | On 01 Sep 2015

China’s One Belt One Road Strategy: The New Financial Institutions and India’s Options

This paper attempts to discuss India’s options to collaborate with China at the event of the formation of new financial institutions and how should India engage with China’s new Silk Road strategy.

Section: Working Papers

by Ajay Chhibber | On 01 Sep 2015

Fiscal Seigniorage “Laffer-curve effect” on Central Bank Autonomy in India

It is often emphasised that seigniorage financing of public sector deficits is technically a “free lunch” if the economy has not attained the full employment levels. However, conservative macroecono...

Section: Working Papers

by Lekha S. Chakraborty | On 01 Sep 2015

Efficacy of New Monetary Framework and Determining Inflation in India: An Empirical Analysis of Financially Deregulated Regime

Against the backdrop of the new monetary policy framework, this paper analyses the determinants of inflation in the deregulated financial regime. The paper upfront has been kept free from adherence to...

Section: Working Papers

by Lekha Chakraborty | On 01 Aug 2015

Food Inflation in India: Causes and Consequences

Average food inflation in India during the period 2006-2013 was one of the highest among emerging market economies, and nearly double the inflation witnessed in India during the previous decade. In...

Section: Working Papers

by Rudrani Bhattacharya | On 01 Jun 2015

Minimising Selection Failure and Measuring Tax Gap: An Empirical Model

This paper presents an empirical model for minimising selection failure by tax departments in selecting cases for scrutiny assessment. This model also provides a new methodology for estimating tax gap...

Section: Working Papers

by Sudhanshu Kumar | On 01 May 2015

A New Banking Landscape for New India

There are many contours that would define the Indian banking sector in the coming days. It would be important for the banks to keep track of emerging trends and be prepared not only to negotiate thro...

Section: Working Papers

by S.S. Mundra | On 29 Jan 2015

Designing Policies in the Presence of Hawala Markets

The paper explores the impact of the existence of such a mechanism on the effectiveness of various policy instruments in influencing outcomes on the official foreign exchange markets and GDP. The pape...

Section: Working Papers

by R.Kavita Rao | On 01 Jan 2015

Financial Access - Measurement and Determinants: A Case Study of Unorganised Manufacturing Enterprises in India

This paper attempts to study financial access of unorganized manufacturing enterprises in India given their importance to the economy and the fact that finance has been the main constraint on their gr...

Section: Working Papers

by T.A. Bhavani | On 01 Jan 2015

Financial Access - Measurement and Determinants: A Case Study of Unorganised Manufacturing Enterprises in India

This paper attempts to study financial access of unorganized manufacturing enterprises in India given their importance to the economy and the fact that finance has been the main constraint on their gr...

Section: Working Papers

by T.A. Bhavani | On 01 Jan 2015

Three Decades of Human Development across Indian States: Inclusive Growth or Perpetual Disparity?

The importance of strengthening the human development (HD) achievements in a country to augment its growth potential is well known in development literature. Several initiatives to enhance the HD leve...

Section: Working Papers

by Sacchidananda Mukherjee | On 01 Jun 2014

Developmental Disability Index for Hill States in India

Tthe first objective of this study is to construct a cost disability index in provision of developmental infrastructure. The second objective is rooted in the poor state of developmental infrastructur...

Section: Working Papers

by Ritu Pandey | On 01 Apr 2014

The World Water Development Report 2014: Water and Energy

The World Water Development Report is produced by the World Water Assessment Programme, a programme of UN-Water hosted by UNESCO, and is the result of the joint efforts of the UN agencies and entities...

Section: General

by Environmental Management & Policy Research Institute | On 21 Mar 2014

Direct and Indirect use of Fossil Fuels in Farming: Cost of Fuel-price Rise for Indian Agriculture

This paper focusses on the interaction between fossil fuels and farming in India, to capture total intensity of fossils in farming and offer some evidence on inflationary impact of fossil fuel price i...

Section: Working Papers

by Mukesh Kumar Anand | On 01 Feb 2014

Revival of Mining Sector in India: Analysing Legislations and Royalty Regime

This paper on the mining sector is an attempt to analyse the sector, in particular, at its competitiveness. Against the backdrop of the Planning Commission’s High-level Committee Report on National Mi...

Section: Working Papers

by Lekha Chakraborty | On 01 Jan 2014

Gender Responsive Budgeting, as Fiscal Innovation: Evidence from India on “Processes”

Gender Responsive Budgeting (GRB) as an innovation has four specific components: knowledge processes and networking; institutional mechanisms; learning processes and building capacities; and public ac...

Section: Working Papers

by Lekha Chakraborty | On 01 Jan 2014

Integrating Time in Public Policy: Any Evidence from Gender Diagnosis and Budgeting

Time use statistics is highly neglected in the studies on gender budgeting. The integration of this into this process remains partial or even nil across countries. This paper takes up these issues and...

Section: Working Papers

by Lekha Chakraborty | On 01 Oct 2013

Improving Public Financial Management in India: Opportunities to Move Forward

In recent years the role of a sound PFM system to achieve the objectives of fiscal discipline, strategic planning, and improved service delivery has been getting increasing public attention in India....

Section: Working Papers

by Pratap Ranjan Jena | On 01 Apr 2013

Fiscal Reforms, Fiscal Rule and Development Spending: How Indian States have Performed?

In this paper it is examined whether a favourable fiscal rule had impact on fiscal balance but what lies behind a particular outcome in a rule based fiscal regime. Often time it is argued that fiscal...

Section: Working Papers

by Pinaki Chakraborty | On 01 Apr 2013

Does Political Competition Influence Human Development? Evidence from the Indian States

Recently, it has been argued that political competition may have similar effects on economic performance as market competition. This study empirically examines this proposition by linking political co...

Section: Working Papers

by Bharatee Bhushan Dash | On 01 Feb 2013

Public Expenditure Benefit Incidence on Health: Selective Evidence from India

This paper attempts to analyse the benefit incidence of health spending in the context of India. Benefit incidence analysis (hereafter BIA) is used here. This is a methodology that addresses this ques...

Section: Working Papers

by Lekha Chakraborty | On 01 Dec 2012

The Real Exchange Rate and Export Growth: Are Services Different?

The determinants of exports of services, distinguishing between modern and traditional services are considered. The growth of export volumes and so-called export surges – periods of rapid sustained...

Section: Working Papers

by Barry Eichengreen | On 01 Nov 2012

Diesel Pricing in India: Entangled in Policy Maze

This paper identifies the important economic activities that use diesel and discusses the contribution of those sectors in GDP. Other important petroleum products and, their limited substitution possi...

Section: Working Papers

by Mukesh Kumar Anand | On 01 Oct 2012

How Indian Voters Respond to Candidates with Criminal Charges: Evidence from the 2009 Lok Sabha Elections

What are the response of voters to candidates who have reported that they have criminal charges against them? A analysis within the framework of a simple analytical model which assumes that criminal c...

Section: Working Papers

by Bhaskar Dutta | On 01 Oct 2012

Energy Savings Potential and Policy for Energy Conservation in Selected Indian Manufacturing Industries

This paper focuses on the assessment of energy savings potential in seven highly energy consuming industries. The paper estimates the energy savings potential for each of these industries using unit l...

Section: Working Papers

by Manish Gupta | On 01 Sep 2012

Bihar: What went wrong? And what changed?

A historical narrative of Bihar is provided context to much of its current state, Focus is given on its contemporary economy in the past three decades to better understand the moribund state of its ec...

Section: Working Papers

by Arnab Mukherji | On 01 Sep 2012

The Quality of Governance How Have Indian States Performed?

What is ‘good’ governance? Can the quality of governance be measured? And how do state governments in India measure up by such a measure? [Working Paper no. 104]. URL:[

Section: Working Papers

by Sudipto Mundle | On 31 Jul 2012

New Thinking on Corporate Bond Market in India

What are major factors behind underdevelopment of corporate bond market in India? One of the major bottlenecks to the development of this market lies in relatively larger costs of financing which diss...

Section: Working Papers

by Sanjay Banerji | On 30 Jun 2012

Exports of Services: Indian Experience in Perspective

India’s experience with exporting services is examined. The country’s experience is distinctive in that services, especially modern tradable services, comprise a significantly larger share of GDP tha...

Section: Working Papers

by Barry Eichengreen | On 30 Mar 2012

Political Determinants of the Allocation of Public Expenditures: A Study of the Indian States

This study examines whether the allocation of public expenditures of the Indian states are significantly influenced by government specific political characteristics. Three types of government specif...

Section: Working Papers

by Bharatee Bhusana Dash | On 20 Mar 2012

Health Care Financing Reforms in India

The transfer system in India is discussed and analyses expenditure needs of States to provide essential health infrastructure. It also analyzes the fiscal space for health care in terms of stimulati...

Section: Working Papers

by M Govinda Rao | On 17 Mar 2012

Oil Price Shock, Pass-through Policy and its Impact on India

This paper analyses the impact of transmission of international oil prices and domestic oil price pass-through policy on major macroeconomic variables in India with the help of a macroeconomic policy...

Section: Working Papers

by N R Bhanumurthy | On 12 Mar 2012

The Second Fundamental Theorem of Positive Economics

Welfare Economics is fortunate that there are two Fundamental Theorems of Welfare Economics. Positive Economics on the other hand is seemingly endowed with none. One of the fundamental results of Posi...

Section: Working Papers

by Anjan Mukherji | On 08 Mar 2012

An Estimated DSGE Model of the Indian Economy

A closed model DSGE model of the Indian economy is developed and it is estimated by Bayesian Maximum Likelihood methods using Dynare. A model is build up in stages to with a number of features impo...

Section: Working Papers

by Vasco Gabriel | On 24 Nov 2011

Informal Labour and Credit Markets: A Survey

This paper reviews the literature on the informal economy, focusing first on empirical findings and then on existing approaches to modelling informality within both partial and general equilibrium e...

Section: Working Papers

by Nicoletta Batini | On 21 Nov 2011

Millenium Development Goals: How is India Doing?

This paper evaluates the Millenium Development Goals (MDGs) as a framework for measuring development and, subject to qualifications arising from that evaluation, assesses how India is doing in terms o...

Section: Working Papers

by Sudipto Mundle | On 11 Nov 2011

Growth and Election Outcomes in a Developing Country

With the exception Brander and Drazen (2008), who use a comprehensive cross-country database consisting of both developed and developing countries, the hypothesis that rapid growth helps incumbents...

Section: Working Papers

by Poonam Gupta | On 31 Oct 2011

Civil Service and Military Pensions in India

The New Pension System in India and the progress that has been made since its introduction in 2004 is described. It then identifies the challenges ahead. It also documents the state of military pens...

Section: Working Papers

by Renuka Sane | On 26 Sep 2011

Tracking India Growth in Real Time

This paper compares different approaches to the short term forecasting (nowcasting) of real GDP growth in India and evaluates methods to optimally gauge the current state of the economy. Univariate ...

Section: Working Papers

by Rudrani Bhattacharya | On 01 Jul 2011

Public Infrastructure Investment and Non-Market Work in India: Selective Evidence from Time Use Data

Theory of allocation of time revealed that historically market-time has never consistently been greater than the non-market time and therefore the allocation and efficiency of latter may be equally...

Section: Working Papers

by Lekha S. Chakraborty | On 29 Jun 2011

Monetary and Fiscal Policy in the Presence of Informal Labour Markets

How does informality in emerging economies affect the conduct of monetary and fiscal policy? To answer this question two-sector, formal-informal new Keynesian closed-economy is constructed. The inf...

Section: Working Papers

by Nicoletta Batini | On 13 May 2011

Who Cares about the Chinese Yuan?

The rise of China in the world economy and in international trade has raised the possibility of a rise of the Yuan as an international currency, particularly after the Chinese authorities have under...

Section: Working Papers

by Vimal Balasubramaniam | On 03 May 2011

Has India Emerged? Business Cycle Stylized Facts from a Transitioning Economy

This paper presents a comprehensive set of stylised facts for business cycles in India from 1950 - 2009. India's business cycle in the pre 1991 economy is compared with the post 1991 Indian economy,...

Section: Working Papers

by Ila Patnaik | On 27 Apr 2011

Did the Indian Capital Controls Work as a Tool of Macroeconomic Policy?

In 2010 and 2011, there has been a fresh wave of interest in cap- ital controls. India is one of the few large countries with a complex system of capital controls, and hence others an opportunity to...

Section: Working Papers

by Ila Patnaik | On 21 Apr 2011

A Floating versus Managed Exchange Rate Regime in a DSGE Model of India

In this paper the authors first develop a two-bloc model of an emerging open economy interacting with the rest of the world calibrated using Indian and US data. The model features a fina...

Section: Working Papers

by Nicoletta Batini | On 10 Apr 2011

Trends in Diversion of PDS Grain

This article estimates the proportion of grain "diverted" from the Public Distribution System (PDS) to the open market, using the well-established method of matching state offtake figures published by...

Section: Working Papers

by Reetika Khera | On 21 Mar 2011

Stimulus, Recovery and Exit Policy G20 Experience and Indian Strategy

There are large variations among the G20 countries in their deceleration experiences, transmission mechanisms and their current macroeconomic outlook. Hence, this paper argues that each country nee...

Section: Working Papers

by Sudipto Mundle | On 14 Mar 2011

Panchayats and Economic Development

The objective of this study is to review the analytical literature on the relationship between decentralisation and development, bring out the impact of decentralisation on economic development from...

Section: Working Papers

by M.Govinda Rao | On 07 Mar 2011

Indian Social Democracy:The Resource perspective

This paper examines the strategy for obtaining adequate resources for the Indian State, where the goals of the State comprise the provision of public goods (which, by defi nition, benefi t everyone)...

Section: Working Papers

by Vijay Kelkar | On 17 Feb 2011

Federalism and Fiscal Reform in India

This paper attempts to analyse the experience of incentivising economic reforms at the state level through central transfers to states. It reviews the experiences of the central government introdu...

Section: Working Papers

by M. Govinda Rao | On 09 Feb 2011

How to Measure inflation in India?

What is the best inflation measure in India? What inflation measure is most relevant for monetary policy making in India? Questions of timeliness, weights in the price index, accuracy of food price m...

Section: Working Papers

by Ila Patnaik | On 06 Feb 2011

Deficit Fundamentalism vs Fiscal Federalism: Implications of 13th Finance Commission’s Recommendations

The important recommendations of the Thirteenth Finance Commission (THFC) can be categorised under the following heads: • Enhanced vertical devolution from 30.5 to 32 per cent of divisible pool of ...

Section: Working Papers

by Pinaki Chakraborty | On 31 Jan 2011

India's Financial Globalisation

India embarked on reintegration with the world economy in the early 1990s. At first, a certain limited opening took place emphasizing equity flows by certain kinds of foreign investors. This openin...

Section: Working Papers

by Ajay Shah | On 10 Jan 2011

Reforming the Indian Financial System

The key features of Indian finance is summarised. With a growing savings rate and a growing share of private corporate capital forma- tion, and with a high growth rate of GDP, Indian finance is rapi...

Section: Working Papers

by Ajay Shah | On 02 Jan 2011

The Report of the Thirteenth Finance Commission Conundrum in Conditionalities

The focus of this paper is to examine the approach of the Commission in regard to its Terms of Reference (ToR) and analyse the recommendations relating to its main task, namely tax devolution and gr...

Section: Working Papers

by M Govinda Rao | On 07 Dec 2010

Determinants of Trade Misinvoicing

Traditional explanations for trade misinvoicing -- high custom duties and weak domestic economies — are less persuasive in a world of high growth emerging markets who have low trade barriers. A 35- ...

Section: Working Papers

by Ila Patnaik | On 22 Oct 2010

Foreign Shareholding: A Decomposition Analysis

A decomposition in the ownership of shares by foreigners is offered into three parts: the change in insider shareholding, the change in market capitalisation and the change in the fraction of outsi...

Section: Working Papers

by Ajay Shah | On 16 Oct 2010

Fiscal Consolidation with High Growth A Policy Simulation Model for India

In this paper a fiscal consolidation program for India has been presented based on a policy simulation model that enables us to examine the macroeconomic implications of alternative fiscal strateg...

Section: Working Papers

by Sudipto Mundle | On 09 Aug 2010

Monetary Policy in an Uncertain World: Probability Models and the Design of Robust Monetary Rules

The past forty years or so has seen a remarkable transformation in macro-models used by central banks, policymakers and forecasting bodies.This papers describes this trans formation from reduced-for...

Section: Working Papers

by Paul Levine | On 31 Jul 2010

Understanding the ADR premium under market segmentation

Capital controls can induce large and persistent deviations from the Law of One Price for cross-listed stocks in international capital markets. A considerable literature has explored rm-speci c fac...

Section: Working Papers

by Matthieu Stigler | On 29 Jul 2010

The Exchange Rate Regime in Asia: From Crisis to Crisis

Prior to the Asian financial crisis, most Asian exchange rates were de facto pegged to the US Dollar. In the crisis, many economies experienced a brief period of extreme flexibility. A `fear of float...

Section: Working Papers

by Ila Patnaik | On 18 May 2010

Urban Governance and Finance in India

Over 330 million people live in India’s cities; 35 cities have a population of over a million and three (Mumbai, Delhi, and Kolkata) of the 10 largest metropolises in the world are in India. India’s...

Section: Working Papers

by M. Govinda Rao | On 21 Apr 2010

Graduating to Globalisation: A Study of Southern Multinationals

FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to unde...

Section: Working Papers

by Dilek Demirbas | On 16 Feb 2010

Why India Choked when Lehman Broke

India has an elaborate system of capital controls which impede cap- ital mobility and particularly short-term debt. Yet, when the global money market fell into turmoil after the bankruptcy of Lehman...

Section: Working Papers

by Ila Patnaik | On 11 Jan 2010

Asia Confronts the Impossible Trinity

Capital account openness and exchange rate flexibility in 11 Asian countries are examined. Asia has made slow progress on de jure capital account openness, but has made much more progress on de facto...

Section: Working Papers

by Ila Patnaik | On 04 Jan 2010

The Difficulties of the Chinese and Indian Exchange Rate Regimes

China and India have both attempted distorting the exchange rate in order to foster exports-led growth. This is described as the Bretton Woods II framework, where developing countries buy bonds in the...

Section: Working Papers

by Ila Patnaik | On 30 Aug 2009

Examining the Decoupling Hypothesis for India

This paper examines the decoupling hypothesis for India. This paper analyses business cycle synchronization between India and a set of industrial economies, particularly the United States, over the pe...

Section: Working Papers

by Shruthi Jayaram | On 19 Jun 2009

Fiscal Health of Selected Indian Cities

The paper aims to assess the fiscal health of five urban agglomerations (UAs) in India viz. Delhi, Hyderabad, Kolkata, Chennai, and Pune. The sample consists of five corporations and sixty three small...

Section: Working Papers

by Simanti Bandyopadhyay | On 01 Mar 2009

Financing Strategy for Achievement of the MDGs and Implementation of the Tenth Five Year Plan

This report presents an analysis of the strategy required to generate the required resources for investment in various services necessary to achieve the MDGs. The analysis attempts to quantify the fis...

Section: Working Papers

by M. Govinda Rao | On 01 Mar 2009

Health Damage Cost of Automotive Air Pollution: Cost Benefit Analysis of Fuel Quality Upgradation for Indian Cities

An analysis of the economic implication of judicial activism of the apex court of India in the regulation of automotive air pollution is analysed. It estimates the health damage cost of urban air po...

Section: Working Papers

by Ramprasad Sengupta | On 16 Jan 2009

Goods and Services Tax for India

The paper contours of a feasible design of VAT in India. It also takes on board the various alternatives proposed. It looks at the issues that need resolution and the options available for resolving t...

Section: Working Papers

by R.Kavita Rao | On 01 Nov 2008

The Interface Between Economic Development, Health and Environment in India : An Econometric Investigation

This paper analyses interrelationships between ‘economic development’, ‘health’, and ‘environment’ in a simultaneous equations framework. The endogenous variables chosen for the model are GDPPC (per c...

Section: Working Papers

by A L Nagar | On 17 Oct 2008

Early Warnings of Inflation in India

In India, year-on-year percentage changes of price indexes are widely used as the measure of inflation. In terms of monthly data, each observation of a one-year change in inflation is the sum of twelv...

Section: Working Papers

by Rudrani Bhattacharya | On 10 Aug 2008

Issues Before the Thirteenth Finance Commission

The paper argues that irrespective of the wording of the Terms of Reference (ToR), the Commission would do well to focus on its primary task of recommending transfers to serve the objective of equit...

Section: Working Papers

by M.Govinda Rao | On 06 Aug 2008

Managing Capital Flows: The Case of India

From the early 1990s, India embarked on easing capital controls. Liberalization emphasised openness towards equity flows, both FDI and portfolio flows. In particular, there are few barriers in the fa...

Section: Working Papers

by Ajay Shah | On 24 Jul 2008

Fiscal Policy and Economic Reforms

A practitioner’s perspective of fiscal policy, and economic reforms.

Section: Working Papers

by Y V Reddy | On 14 May 2008

New issues in Indian macro policy

For many decades, macro-policy in India was conducted in an environment with five key elements: ˆ Agricultural shocks rather than a conventional business cycle; A closed economy; deeply distorti...

Section: Working Papers

by Ajay Shah | On 13 May 2008

Does the Currency Regime Shape Unhedged Currency Exposure?

This paper examines how unhedged currency exposure of firms varies with changes in currency exibility. A sequence of four time-periods with alternating high and low currency volatility in India prov...

Section: Working Papers

by Ila Patnaik | On 10 May 2008

An Open Services Regime Recipe for Jobless Growth?

This paper reviews India’s experience to understand how services sector liberalisation can generate (welfare) gains for developing countries, in particular vis-à-vis its employment generation potenti...

Section: Working Papers

by Suparna Karmakar | On 14 Mar 2008

The Indian Currency Regime and its Consequences

Since 1993, India’s currency regime is said to be a managed float, a “market determined exchange rate” in the sense that there is a currency market and the exchange rate is not visibly administrativel...

Section: Working Papers

by Ila Patnaik | On 10 Jul 2007

Tracking Functional Devolution by States to Panchayats

The Eleventh Schedule added to the Constitution by the Seventy-third Amendment lists twenty-nine functions devolvable by States to Panchayati Raj Institutions (PRIs). States were free to set the sp...

Section: Working Papers

by Indira Rajaraman | On 28 May 2007

Reprioritisation of Public Expenditure for Human Development

An important method of managing resources to finance consistent and balanced human development lies in the reprioritisation of current expenditure in accordance with the urgent needs and shortfalls...

Section: Working Papers

by Tapas K. Sen | On 13 May 2007

Public Expenditure on Education : A Review of Selected Issues and Evidence

The role of education in economic development has been recognised for quite some time in mainstream economic literature. Divergence between the private and social rate of return from education is th...

Section: Working Papers

by Anit Mukherjee | On 02 Mar 2007

Reforming Delivery of Urban Services in Developing Countries: Evidence from a Case Study in India

Given the importance of urban public services in attracting firm location, increasing employment and facilitating economic growth, in this paper, the author examines the following questions: Is there...

Section: Working Papers

by Kala Seetharam Sreedhar | On 23 Dec 2006

Fiscal Deficit, Capital Formation, and Crowding Out : Evidence from India

Theoretical literature identifies two variants of crowding out in an economy–real and financial. The real (direct) crowding out occurs when the increase in public investment displaces private capital...

Section: Working Papers

by Lekha S. Chakraborty | On 21 Dec 2006

Fiscal Decentralisation and Local Level Gender Responsive Budgeting in Morocco: Some Observations

During the last few years there has been a significant attempt to change the status of women in Morocco. Considerable efforts have been made to incorporate mainstream gender in socio-economic policies...

Section: Working Papers

by M.Govinda Rao | On 01 Nov 2006

Fiscal Decentralisation and Local Level Gender Responsive Budgeting In The Philippines: An Empirical Analysis

With the strengthening of the fiscal decentralisation process in the Philippines, local government units (LGUs) were provided with more opportunities in terms of local level gender responsive budge...

Section: Working Papers

by Lekha S. Chakraborty | On 01 Oct 2006

Fiscal Decentralisation and Gender Responsive Budgeting in Mexico: Some Observations

This paper analyses the scope and limitations of gender responsive budgeting in Mexico within the overall framework of fiscal decentralisation. However, decentralised gender responsive budgeting can b...

Section: Working Papers

by Lekha S. Chakraborty | On 01 Sep 2006

Raising the Tax Ratio by Reining in the 'Tax Breaks': An Agenda for Action

The increase in direct taxes has not been able to offset the decline that resulted from the reduction in customs tariff and decline in excise revenue. The task facing the policymakers now is to explor...

Section: Working Papers

by Amaresh Bagchi | On 14 Dec 2005

Transition to Market and Normative Framework of Fiscal Federalism

This paper deals with the challenges of fiscal federalism in planned economies. Planned economies through their various policy instruments to control the resource allocation introduce several source...

Section: Working Papers

by M.Govinda Rao | On 06 Dec 2005

Trends and Issues in Tax Policy and Reform in India

The Indian tax reform experience can provide useful lessons for many countries due to the largeness of the country with multilevel fiscal framework, uniqueness of the reform experience and difficult...

Section: Working Papers

by M.Govinda Rao | On 10 Nov 2005

Fiscal Management in Haryana: A Review

An attempt has been made to understand the factors leading to the worsening situation of the state finances. Investigations reveal that the revenue receipts of the state could not keep pace with ex...

Section: Working Papers

by N K Bishnoi | On 05 Jun 2005

Measurement of Environmental Efficiency and Productivity: A Cross Country Analysis

This paper measures environmental efficiency (EE) and environmental productivity (EP) and analyses differences in these across countries. It explores the macroeconomic factors that could explain these...

Section: Working Papers

by Surender Kumar | On 14 Mar 2005

Cities with Suburbs: Evidence from India

For a country like India that contains a large number of Urban Agglomerations (UAs), suburbanisation has drawn little attention of the literature. I focus on this sparsely studied issue in this work....

Section: Working Papers

by Kala Seetharam Sridhar | On 20 Dec 2004

Fiscal Developments and Outlook in India

The paper identifies those elements in the configuration of fiscal parameters confronting the country that give cause for concern, and examines whether the fiscal reform measures taken address these...

Section: Working Papers

by Indira Rajaraman | On 20 Oct 2004

Analyzing Industrial Water Demand in India: An Input Distance Function Approach

This study investigates the water demand of Indian manufacturing plants. It adopts an input distance function approach and approximates it by a translog form. Duality between cost function and input d...

Section: Working Papers

by Surender Kumar | On 17 Mar 2004

Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries

Simultaneous relationship between telecommunications and the economic growth, using data for developing countries are examined. Using 3SLS, a system of equations that endogenize economic growth and...

Section: Working Papers

by Kala Seetharam Sridhar | On 15 Mar 2004

Asymmetric Federalism in India

The paper examines the asymmetric features in Indian federalism and evaluates its contribution. There are discussions on the special arrangements in the Indian constitution to accommodate special ca...

Section: Working Papers

by M Govinda Rao | On 14 Feb 2004

Women's Contribution to the Economy Through Their Unpaid Household Work

An attempt has been made to discuss various aspects of unpaid household work such as its treatment in the system of National Accounts, and the methodologies of its valuation. With the help relevant da...

Section: Discussion Papers

by R N Pandey | On 09 May 2001

Tradable Permits for Environmental Protection: Case Study of an Integrated Steel Plant in India

Cost effective policies allow minimising the compliance costs associated to reaching a desired environmental quality target. In this paper a conceptual model has been developed to examine the complia...

Section: Working Papers

by Rita Pandey | On 20 Dec 2000

Incentive Effects of Capital Gains and Inheritance Taxes on Interstate Migration: The Holt and Shelton Analysis Revisited

The present study attempts to analyse the effect of capital gains and inheritance taxes on individual decisions to migrate. [NIPFP WP no. 81].

Section: Working Papers

by Martin David | On 12 Jul 1987